Part 3: The Crack Spread (yes, really)

In Parts 1 and 2, we learned about commodities and derivative markets. Today, we’ll talk about a different kind of natural gas trading, and, as promised, we’ll talk about the crack spread and why you love it. Hedging Further: OTC trading and commodity swaps Another type of risk-hedging is achieved through OTC (over-the-counter) trading. These are trades […]

Part 2: Risk-Hedging: Futures and derivatives

In Part 1, we learned about what affects spot prices for natural gas, and discovered the need to hedge against future risk in natural gas markets. How does one do that? One should probably not hide one’s cash in one’s mattress–it’s not doing you any good there! Hedging one’s Bets: Natural Gas is a Lot Like […]

Jenergy: Week ending April 10, 2013.

I know you’ve been champing at the bit to learn about what’s interesting in the world of energy and energy policy this week, so I’m delaying the advent of my weekend Jenanigans to give you what you want. I’m an altruist like that. So let’s do this! The Sub-subcommittee on the Affairs of Subcommittees SubcommitteeThis […]